Social Responsibility in Business Essay Example | Topics and Well Written Essays - 750 words

Social Responsibility in Business - Essay Example It is, however, underlined that all definitions of Social Responsibility focus on interrelationship between the economic, social as well as environmental and social aspects plus impacts of the organization’s activities. The following definition of Social Responsibility is advised to be used: â€Å"Social Responsibility means a balanced approach for certain companies to address and look for solutions to resolve economic, environmental and personal problems so that it benefits people, as well as whole communities and society in general† (International Institute of Sustainable Development, 2004). Social responsibility, therefore, underlies the ethical way of running any type of business. It, however, should not be confused with business ethics even if sometimes these two terms are used interchangeably. Social responsibility, according to William & Ferrell, is a broader concept which describes the impact of all business’s activities on our society while business ethi cs refers to decisions made by an individual or a group (Ferrell & Fraedlich, 2012, p. 39). In her turn, Jennings observes that social responsibility is just another layer of business ethics which describes the ways of considering the interests of all stakeholders and general public while resolving the ethical problems it encounters (Jennings, 2012, p. 48) The term â€Å"social responsibility† is referred to differently across the globe. Specifically, in the United Kingdom the term â€Å"corporate social responsibility† is common, in India this is â€Å"corporate citizenship†, in Chile – â€Å"Enterpreneurial Social Responsibility† , and in South Africa either â€Å"corporate social responsibility† (CSR) or â€Å"corporate social investment†, or â€Å"sustainable development†, etc (International Institute of Sustainable Development, 2004). While the social responsibility of business has been emphasized by the efforts of the gen eral public and its outcries, as well as by government regulation, social responsibility depends on the management’s attitude. The latter depends on which of two contrasting philosophies (models) has been chosen as dominant. Specifically, the economic model of social responsibility maintains that society gets the biggest benefit when the enterprises is left alone with its production and marketing of profitable goods needed by the society. It is based on traditional understanding of business as a venture that exists only to produce goods and services of high quality, earn nice profits, and give job opportunities (Pride, Hughes, Kapoor, 2012, p.52). In contrast, the socioeconomic model is based on recognition that the business has a responsibility not just to its stakeholders but to the general public, its employees, consumers, and suppliers. To illustrate, may firms today not merely accept social responsibility, but take pride in their social responsibility records winning awa rds in a variety areas, e.g. community involvement, environment, etc. These are such companies as Coca-Cola, Colgate-Palmolive, Hewlett-Packard, and Starbucks Coffee (Pride, Hughes, Kapoor, 2012, p.52). Despite obvious advantages of the second model, its benefit has been debated. Similarly, the viability of the economic model has been debated throughout years. Major arguments for enhanced social responsibility are as follows: 1) Since business is a part of a society, it should not neglect social issues; 2) Business possess necessary